NVIDIA Corporation
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Is NVDA overpriced relative to GOLD?

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My thesis is that comparing an equity price in a ratio to spot gold expecially on long

time frames can sometimes bring clarity to complicated trading decisions. Here, I seek

to determine since I hold both gold on the forex market and NVDA call options, whether

I should sell one to buy the other. Upon putting the ratio of NVDA price compared with

spot gold on a weekly chart I have discovered that NVDA has ran up considerably over

the past 5-6 years into an obvious all time high. This is not a surprise given NVDA's position

as a subsector leader and a frontrunner on the AI revolution. The last golden cross of the pair of

HMAs was this past March. Relative strength of the ratio is nearly 80. Importantly, the

mass index is about to trigger a reversal.


Overall, because of this analysis, I will dollar cost average out of the NVDA call options

closing them at weekly highs over the next month. With the proceeds, I will increase

my spot gold position and look into call options on one of the gold ETFs.
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